“This Is A New World Order” – Greece Not Allowed Leave EU – Faber
by Mark O’Byrne, Gold Core
– Greece will not be ejected from the EU – Faber on CNBC
– Greek default will trigger massive losses for ECB and European banks
– Highlights geo-political impetus to keep Greece within EU, NATO fold
– Shows strategic geo-political importance of Greece in NATO’s Cold war with Russia
– China and Russia’s ever-closer relationship more important than declining UK
– “This Is A New World Order” – Dr Faber
In another fascinating interview, this time on CNBC, Dr. Marc Faber discussed the factors involved in the ongoing Greek crisis and made some interesting points.
Dr. Faber – who edits the Gloom, Boom and Doom report – is in no doubt that Greece will not be allowed to default because of both economic and geo-political considerations.
“It’s about the ECB and European banks that have lent money to Greece and if Greece defaults would have to take a huge loss and write-off. So they will lend more money and kick the can down the road.”
Of even greater significance is Greece’s strategically vital location as a gateway between the Black Sea and the Mediterranean.
It is this geo-political factor which Faber believes will ensure that Greece is kept within the EU fold at any cost. For this reason he insists that Russia will never cede Crimea to the western powers.
“From the Black Sea, the Russian fleet can move into the Mediterranean. and without that, they can’t – they have no access to the Mediterranean, without the Black Sea and Crimea.”
Between the Black Sea and the Mediterranean, he adds, lie Turkey, Moldavia and then Greece making Greece “a very strategically important part of Europe”.
The implication is that were the EU to cut Greece loose Russia would be only too happy to step in and potentially project military power directly into Europe.
Faber was then asked to clarify whether he was suggesting that the EU would never let Greece go so that “Putin … cannot recapture the glory of the Soviet Union.”
He subtly points out that imperialism is by no means confined to Russia and that Russia’s recent actions may have been in response to U.S. imperialism.
“Basically, America has had the Wolfowitz doctrine to contain countries like China and Russia.”
He goes on to highlight the new emerging geo-political order where emerging powers China and Russia grow ever closer. There was plenty of Asian media attention on Premier Xi’s visit to Russia.
In contrast, Britain’s election was regarded by western and some international media as being important. Faber believes there is evidence that the global influence of the UK and the U.S. is in decline.
He cites China and Russia’s ever-closer relationship as being more important than the the relative insignificance of Britain’s election and suggests China and Russia’s increasing power is a “new world order.”
He says that it may be that the EU will, until the eleventh hour, make threats and jawbone Greece in order to extract the best terms. Ultimately, however, they are left with little choice but to bail Greece out and postpone the inevitable for a little while longer.
Dr. Faber’s lucid analysis indicates that from both an economic and geopolitical point of view the world and particularly Europe, is in a vulnerable position.
He has previously advised readers and clients to act as their own central bank and buy physical precious metals (gold, silver, platinum and palladium) as a hedge against currency depreciation and geopolitical crises. Faber believes that storing gold in Singapore is the safest way to own gold today.
Dr Marc Faber:
I don’t think it’s about Greece economically. It’s about the ECB and European banks that have lent money to Greece and if Greece defaults would have to take a huge loss and write-off. So they will lend more money and kick the can down the road.
Number 2; and this is overlooked by many people, it’s a political issue. If Greece leaves; or if Portugal leaves; or if Spain leaves; or if anyone leaves; the NATO countries led by America, basically, are very afraid that either the Russians establish closer relationship…. you have to look at the geography of Eastern Europe. You have the northern part of the Mediterranean – The Black Sea. And there you have Crimea Island and to the east of Crimea Island you have Eastern Ukraine.
The Russians will never give up Eastern Ukraine. It’s like the Chinese will not give up Hainan Island, you understand? It’s not going to happen under any condition. The West can bitch and talk and whatever they want – they’re not going to give it up.
I’m trying to figure this out – what has this to do with Greece not leaving the EU?
Dr Marc Faber:
Well this is what i am trying to explain to you because you have little knowledge of the Eastern European geography. from The Black Sea the Russian fleet can move into the Mediterranean and without that, they can’t – they have no access to the Mediterranean, without The Black Sea and Crimea.
And in the Mediterranean you have first Turkey, Moldavia and then Greece…and Greece is a very strategically important part of Europe.
So you’re saying that at any cost the EU will make sure Greece stays in so Putin can’t get his hands….cannot recapture the glory of the Soviet Union…?
Dr Marc Faber:
Basically, America has had the Wolfowitz doctrine to contain countries like China and Russia. And why do you think is? Xi in Russia and is prominently featured with Putin? This is the new world order. And Americans and the western countries – You just had the news on Cameron. You look at Cameron. What interest is he to the people of the world? Britain is no longer an empire – it’s a degenerated country….Britain is a great country but economically it’s completely meaningless.
Today’s AM LBMA Gold Price was USD 1,184.75, EUR 1,062.20 and GBP 768.37 per ounce.
Friday’s AM LBMA Gold Price was USD 1,185.25, EUR 1,054.26 and GBP 767.46 per ounce.
Gold climbed $5.60 or 0.47 percent on Friday to $1,188.50 an ounce, and silver rose $0.17 or 1.04 percent to $16.48 an ounce.
Gold rose 1.2% on the week and silver was 2.1% higher on the week. Gold finished higher on Friday and had a weekly gain in dollars after a volatile week which saw sharp losses in government bond markets.
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Warnings of an accidental default loom over debt swamped Greece as Prime Minister Tsipras’ anti-austerity government heads for another confrontation with an increasingly testy German-led bloc of creditors.
German Finance Minister Schaeuble and his Greek counterpart Varoufakis meet in Brussels this lunch time ahead of a Eurogroup meeting of Eurozone finance ministers, a spokesman for the German finance ministry said. A time was not confirmed the spokesman said it would be before the gathering starts at 1300 GMT.
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